Competitiveness of the broiler industry in Peninsular Malaysia

Competitiveness has become a highly sought objective across government and private sectors across many nations. At the national level, the importance of competitiveness is significant to maximise the welfare of its population, while the private sector endeavours to be more competitive by increasi...

Full description

Saved in:
Bibliographic Details
Main Author: Benalywa, Zineb Abdulaker M
Format: Thesis
Language:English
Published: 2019
Subjects:
Online Access:http://psasir.upm.edu.my/id/eprint/84052/1/FP%202019%2055%20-%20ir.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-upm-ir.84052
record_format uketd_dc
spelling my-upm-ir.840522022-01-04T04:41:36Z Competitiveness of the broiler industry in Peninsular Malaysia 2019-05 Benalywa, Zineb Abdulaker M Competitiveness has become a highly sought objective across government and private sectors across many nations. At the national level, the importance of competitiveness is significant to maximise the welfare of its population, while the private sector endeavours to be more competitive by increasing profits, value added, return, and market share. Broiler meat appears to be the most popular and the cheapest source of protein in Malaysia, wherein trade protection has the potential to stimulate local industry and enhance food security. The trade competition is undeniably strong and Malaysia has been working towards becoming an essential exporter nation. Nevertheless, this vision is barricaded by several challenges that have been lurking in the industry, apart from the rising cost of production and associated reductions in profitability, taxation, variability of corn and soybean prices, as well as instability of exchange rate. As such, by employing the policy analysis matrix (PAM), as well as the approaches initiated by Balassa and Vollrath, this present study assessed the competitiveness of the broiler industry within the context of Peninsular Malaysia. The PAM was applied to analyse the comparative advantage of broiler production and the impacts of distortions in domestic prices. Revealed comparative advantage (RCA) and relative trade advantage (RTA) were adopted in this study to evaluate the performance of broiler trade. Both primary and secondary data were examined in this study. Secondary data were retrieved from a range of sources, while primary data were gathered from a field survey that involved 310 farmers (contract and non-contract) in Peninsular Malaysia. The study outcomes signified that Malaysia has a robust comparative advantage at all scales of broiler production, particularly amidst contract farmers. The present policy indicators revealed that the broiler industry in Malaysia seems far from being protected. The comparative advantage of the chicken subsector indicated that Malaysia has a relative trade advantage in only a single product group, namely HS020712 (Chickens and Capons, Whole Frozen). As such, this study concludes that despite the increment noted in broiler production, Malaysia appears to depend on import of chickens, regardless whole or cut. Therefore, in order to increase competitiveness, the industry should reduce its reliance on imported feeds, but instead, invest more in developing locally-sourced alternative feeds available to farmers at a lower cost, especially when compared to those imported. It is crucial that both the government and private sectors to promote an integrated broiler contract farming. Provision of incentives by the government to producers in support of the broiler industry is one that is of utmost significant. That being mentioned, a viable policy may be implemented to propose lower exchange rates and tax exemption. Poultry industry - Economic aspects - Malaysia - Case studies - Malaysia 2019-05 Thesis http://psasir.upm.edu.my/id/eprint/84052/ http://psasir.upm.edu.my/id/eprint/84052/1/FP%202019%2055%20-%20ir.pdf text en public doctoral Universiti Putra Malaysia Poultry industry - Economic aspects - Malaysia - Case studies - Malaysia Ismail, Mohd Mansor
institution Universiti Putra Malaysia
collection PSAS Institutional Repository
language English
advisor Ismail, Mohd Mansor
topic Poultry industry - Economic aspects - Malaysia - Case studies - Malaysia


spellingShingle Poultry industry - Economic aspects - Malaysia - Case studies - Malaysia


Benalywa, Zineb Abdulaker M
Competitiveness of the broiler industry in Peninsular Malaysia
description Competitiveness has become a highly sought objective across government and private sectors across many nations. At the national level, the importance of competitiveness is significant to maximise the welfare of its population, while the private sector endeavours to be more competitive by increasing profits, value added, return, and market share. Broiler meat appears to be the most popular and the cheapest source of protein in Malaysia, wherein trade protection has the potential to stimulate local industry and enhance food security. The trade competition is undeniably strong and Malaysia has been working towards becoming an essential exporter nation. Nevertheless, this vision is barricaded by several challenges that have been lurking in the industry, apart from the rising cost of production and associated reductions in profitability, taxation, variability of corn and soybean prices, as well as instability of exchange rate. As such, by employing the policy analysis matrix (PAM), as well as the approaches initiated by Balassa and Vollrath, this present study assessed the competitiveness of the broiler industry within the context of Peninsular Malaysia. The PAM was applied to analyse the comparative advantage of broiler production and the impacts of distortions in domestic prices. Revealed comparative advantage (RCA) and relative trade advantage (RTA) were adopted in this study to evaluate the performance of broiler trade. Both primary and secondary data were examined in this study. Secondary data were retrieved from a range of sources, while primary data were gathered from a field survey that involved 310 farmers (contract and non-contract) in Peninsular Malaysia. The study outcomes signified that Malaysia has a robust comparative advantage at all scales of broiler production, particularly amidst contract farmers. The present policy indicators revealed that the broiler industry in Malaysia seems far from being protected. The comparative advantage of the chicken subsector indicated that Malaysia has a relative trade advantage in only a single product group, namely HS020712 (Chickens and Capons, Whole Frozen). As such, this study concludes that despite the increment noted in broiler production, Malaysia appears to depend on import of chickens, regardless whole or cut. Therefore, in order to increase competitiveness, the industry should reduce its reliance on imported feeds, but instead, invest more in developing locally-sourced alternative feeds available to farmers at a lower cost, especially when compared to those imported. It is crucial that both the government and private sectors to promote an integrated broiler contract farming. Provision of incentives by the government to producers in support of the broiler industry is one that is of utmost significant. That being mentioned, a viable policy may be implemented to propose lower exchange rates and tax exemption.
format Thesis
qualification_level Doctorate
author Benalywa, Zineb Abdulaker M
author_facet Benalywa, Zineb Abdulaker M
author_sort Benalywa, Zineb Abdulaker M
title Competitiveness of the broiler industry in Peninsular Malaysia
title_short Competitiveness of the broiler industry in Peninsular Malaysia
title_full Competitiveness of the broiler industry in Peninsular Malaysia
title_fullStr Competitiveness of the broiler industry in Peninsular Malaysia
title_full_unstemmed Competitiveness of the broiler industry in Peninsular Malaysia
title_sort competitiveness of the broiler industry in peninsular malaysia
granting_institution Universiti Putra Malaysia
publishDate 2019
url http://psasir.upm.edu.my/id/eprint/84052/1/FP%202019%2055%20-%20ir.pdf
_version_ 1747813432549179392